WWE Settles Saudi Arabia-Related Lawsuit For $39 Million
The suit was filed in March...
WWE announced on Friday the settlement of a $39 million class action lawsuit with shareholders from the City of Warren (Michigan) Police and Fire Retirement System, in regards to the organization's relationship with Saudi Arabia.
The group filed the suit in March, alleging that WWE had violated the Security Exchange Act by making false and misleading statements regarding their dealings with Saudi Arabia.
The suit alleged that WWE did not disclose potentially negative information (including failed negotiations with the Saudi government over a broadcasting deal) which led to the purchase of stock at artificially inflated prices.
In a filing on November 18, it was noted that WWE entered into a settlement phase with the plaintiffs, agreeing to pay out $39 million, subject to court approval. The settlement will also include full release for all defendants, and will contain no admission of liability or admission of truth regarding the allegations.
The release reads, in part, "The Company believes that resolving the matter is the right business decision and that it is prudent to end the protracted and uncertain class action process."
Written by Justin Henry
In addition to writing lists and commentaries for Cultaholic, Justin is also a features writer and interviewer for Fighting Spirit Magazine, and is co-author of the WWE-related book Titan Screwed: Lost Smiles, Stunners, and Screwjobs.
